Brazilian President Lula da Silva recently signed provisional measure No. 1182 and the bill that will regulate the sports betting industry, with Congress expected to analyse and review the proposal. This is welcome news for platform supplier Sportingtech, which has already made its mark in Latin America and is eagerly awaiting the opportunity to further enhance its impressive footprint.
Writing for SBC News, Sportingtech’s Business Development Manager Brazil, Jhuana Lamas, details how the company has navigated this process.
It’s no secret that the Brazilian market will be incredibly lucrative once legislation is passed, with operators and suppliers looking to be involved with a market worth a potential $1 billion – which is exciting. This new provision is the biggest step in a number of years, so there is definitely cause for excitement.
The new proposal does have some amendments, however. The tax on revenue has risen from 16% to 18% in order to increase the amount of revenue flowing to the Ministry of Sports from 1% to 3%.
While the cost of a licence was not included in the provision, it is expected to increase to R$30m ($6.35m/€5.74m/£4.94m) from the previously proposed R$22.2m. This includes a clause stating that foreign operators will be permitted to apply for a licence, which will of course open up the market to international operators.
Thankfully, having to work within changing frameworks hasn’t proved to be as challenging as it could be. Our compliance team works hard to keep a watchful eye on regulatory developments, so we can hit the ground running when the time comes. Understanding the current situation also ensures we can provide an engaging player experience that is legally sound and enjoyable.
We have long thought about the opportunities that Brazil would bring, given the country’s size, its huge sports scene with leading athletes and teams across a number of global sports, as well as the population’s huge interest in sport. When combined, these factors equal what promises to be a thriving market.
We have been working tirelessly to hit the ground running in Brazil and become the number one brand for operators to trust.
The potential of the market was also key in our decision to have native speaking teams in place across all departments to support operators on their journey of success. This will also be strengthened with our eventual plans to have an office in the country as well.
That aside, we plan on doing what we do so well, delivering tailored products and solutions for operators, that significantly enhances their reputation with bettors.
I am looking forward to participating in a webinar with iGB on 9th August, where we will be discussing what has been a long process towards regulation in Brazil, which may finally be about to come to a close. We will be looking at the key points throughout this journey as well as identifying the necessary requirements to building an engaging sportsbook that resonates with Brazilian bettors, understanding their preferences and delivering a top-class product for operators.